Business & Labor
Fri February 1, 2013
Yellow Cab Seeks Fare Hike Amid Lawsuit
After losing out on a contract with Salt Lake City to provide taxi cab service to and from the Salt Lake City International Airport, Yellow Cab taxi service is calling for the city to increase the company’s cab rates. But the Department of Airports, which is responsible for recommending rate changes to the Salt Lake City Council, says the request will not be granted.
Don Barron, Director of Yellow Cab Company in Salt Lake City says the cost of car insurance and upgrades are the reason why his company is asking for an increase of 20 cents on the per mile cab rate and 75 cents on the flag-drop rate.
“Of course the only money that we get is from our drivers," Barron said. "And if the drivers don’t make a little bit more money than we have a hard time paying our bills.”
Barron appealed to the Department of Airports last month, but was denied his request. The department director said insurance for vehicles owned by drivers are a cost to the drivers, not Yellow Cab and upgrades can be achieved with existing rates.
Department Spokeswoman Barbara Gann says the two providers who’ve secured contracts with the city and will replace Yellow Cab’s on-demand service will work within existing rates.
“The vehicles that will be used by the new companies will be fuel efficient vehicles," Gann said. "They’ll be cleaner, they’ll be newer. They’ll be state of the art.”
Yellow Cab filed a lawsuit against Salt Lake City in 2011 to delay execution of the new contracts. The city hopes the winning bidders, Ace Taxi Service and Total Transit can begin service when the lawsuit is resolved.